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Up-to-date  Regents  Questions 


-IN- 


Bookkeeping 


C.  W.  BARDEEN,  PUBLISHER 


SVF?AOU©E, 


UP-TO-DATE 

REGENTS   QUESTIONS 

IN 

BOOKKEEPING 


WM.    J.     ADAMS,    PD.B. 

PRINCIPAL  CKAMMAR  SCHOOL  No.  1,  RENSSELAER,  N.  Y. 


SYRACUSE,    N.    Y. 
C.   \V.   BARDEEN,   PUBLISHER 


Copyright.    1910,  by  C,   W.   Barrteen 


Up-to-date  Regents  Questions 

BOOKKEEPING 

1  (a)     State  the  two  principal  objects  of  bookkeeping,     (b) 
What  is  the  underlying  principle  of  double-entry  bookkeeping? 

2  (a)     Give  a  general  rule  for  determining  debits  and  credits. 
(b)     Give  (1)  the  names  of  two  accounts  that  should  never  have 
a  credit  balance,  (2)  the  name  of  one  account  that  should  never 
have  a  debit  balance. 

3  (a)     Show  the    superiority  of   double-entry   over  single- 
entry  in  the   matter   of  testing  for  correctness,     (b)     Give  full 
directions  for  changing  a  set  of  books  from  single  to  double  entry. 

4  (a)     Mention  two  essential  points  of  difference  between 
single-entry    and    double-entry    bookkeeping,     (b)     Mention    a 
business  in  which  (1)  single-entry  would  be  advisable,  (2)  double- 
entry  would  be  advisable,     (c)     What  two  advantages  has  the 
double-entry  method  over  the  single  entry  method? 

5  Compare  single  entry  bookkeeping  with  double  entry  as 
to  (a)  the  kind  of  transactions  recorded  in  the  ledger,   (b)  the 
kind  of  accounts  kept  in  the  ledger,  (c)  the  way  in  which  trans- 
actions are  recorded,  (d)  correction  of  .accounts. 

6  (a)     Mention   the   different   classes   of   accounts   used   in 
double  entry  bookkeeping  and  state  the  use  of  each  class,     (b) 
What  class  of  accounts  is  used  in  single  entry? 

7  (a)     State  the  use  of  each  of  three  principal  books  used 
in  double  entry  bookkeeping,     (b)     If  only  one  book  could  be 
saved  in  case  of  fire,  which  should  it  be?     Explain. 

(9) 

415787 


10 


KEGEKTS  QUESTIONS 


Name  two  auxiliary  books  and  illustrate  the  use  of  each  by 
an  entry. 

9  Give  the  special  use  of  each  of  the  following  books :   (a)  bill 
book,   (6)   order  book. 

DEFINITIONS 

10  Illustrate  the  form  of  each  of  the  following  (a)  certified 
check,  (&)  invoice,  (c)  shipping  receipt,  (Omit  printed  limitations) , 

(d)  account  sales,  (e)  due  bill. 

11  Define  five  of  the  following:  (a)  royalty,   (&)  bonus,   (c) 
unsubscribed  stock,  (d)  bond,  (e)  surplus,  (/)  stock  certificate. 

12  Define  (a)  auxiliary  book,  (b)  liability  inventory,  (c)  net 
proceeds,  (d)  pass  book,  (e)  sales  ledger. 

13  State  clearly  the  meaning  of  each  of  the  following  business 
terms:     (a)  account  payable,  (b)  account  sales,   (c)  bills  receiva- 
ble, (d)  certified  check,  (e)  contra  entry. 

14  Define    the  following  terms   and  discuss  fully   the  use 
made  of  each  of  these  discounts  in  business  practice:    (d)  trade 
discount,   (b)  merchandise  discount,  (c)  bank  discount. 

15  Explain  the  following  bookkeeping  terms:  (a)  cash,   (b) 
trial  balance,   (c)  inventory. 

16  Define  (a)  collateral  security,  (a)  assets,   (c)  balance,   (d) 
sinking  fund,  (e)  preferred  stock. 

17  Define  each  of  the  following :  (a)  consignment,  (b)  contract, 
(c)  invoice,  (d)  balance  sheet,  (e)  account  sales. 

18  Define  (a)  power  of  attorney,  (b)  bill,  (c)  receipt,  (d)  protest, 

(e)  shipment. 

19  Give  the  meaning  of  each  of  the  following:  (a)  lease,  (b) 
posting,  (c)  assignment,  (d)  commission,  (e)  bill  of  lading. 


BOOKEEPIXG  11 

20  Define  each  of  the  following:  (a)  insolvency,  (b)  account 
current,  (c)  goodwill,  (d)  partnership,  (e)  creditors. 

21  Define    (a)  statement,    (b)  waybill,   (c)  fixed,  (d)  asset,  (e) 
resources,  (/)  capital. 

22  Give  the  meaning  of  each  of  the  following:  (a)  ledger,  (b) 
stocks,  (c)  account,  (d)  entry,  (e)  solvency. 

CASH  BOOK 

23  What  is  the  general  principle  regarding  the  debits  and 
credits  in  a   cash  book?     (b)  Give  directions  for  opening  and 
balancing  such  a  book,      (b)  How  may  the  correctness  of  the 
cash  book  be  tested? 

24  (a)     Rule  the  debit  page  of  a  cash  book  having  three 
special  columns  and  designate  the  heading  for  each  column. 
(&)     State  the  chief  advantage  of  using  special  columns. 

25  (a)     Explain  how  the  cash  book  is  posted  in  a  double 
entry  set  of  books.     (&)  Tell  how  the  bank  pass  book  and  check 
book  are  used,     (c)     How  often  should  the  cash  book  be  bal- 
anced? 

26  Assuming  cash  on  hand  to  be  SI 00,  rule  and.  write  a  cash 
book  covering  transactions  of  at  least  three  days,  including  both 
payments   and   receipts.     Bring   down   balance   for   each   day. 

27  Enter  in  a  cash  book  (folio  form)  the  following  transac- 
tions (Rule  and  balance  each  day) :     Jan.  3,  1899.     Cash  on  hand 
3500.     Sold    Frank    Booth    merchandise    for    cash    $30.     Paid 
Roberts  &  Co.  for  merchandise  $100.     Arthur  White  paid  his 
note  $150.     Jan.  4.     Paid  my  note  in  favor  of  Paul  Jones  $400. 
Paid  clerk's  salary  $25.     Received  for  sales  of  merchandise  $225. 

28  Arrange  the  following  in  proper  form  in  a  cash  book  and 
balance  the  book:     March  23,  1898,  cash  on  hand  in  morning 


12  UP-TO-DATE  EEGENTS  QUESTIONS 

$10.28.  Received  from  James  Ball  $3.  Paid  for  repairing  bicycle 
$1.75.  Received  for  work  $1.50.  Paid  for  hat  $3,  for  shoes 
$3.50.  Loaned  John  Bell  $5.  Received  for  week's  wages  $10. 

29  Enter  in  a  cash  book,  folio  form  (separate  pages  for  cash 
received  and  cash  paid  out),  used  as  a  book  of  original  entry,  the 
following  transactions  for  posting  to  the  double  entry  ledger: 
Feb.  1,  1900.     Cash  on  hand  $120.50.     Bought  merchandise  of 
Rice  &  Co.  for  cash  $38.60.     Paid  my  note  in  favor  of  Marsham 

.&  Peters  $25.  Cash  sales  $91.69.  Feb.  2.  G.  H.  Adams  paid 
his  note  for  $175.  Sold  William  Butler  merchandise  for  cash 
$18.90.  Paid  C.  C.  Bennett  cash  to  balance  account  $175. 
Cash  sales  $98.60.  (Rule  oft  and  bring  down  balance.) 

30  The  footings  of  a  cash  book  are  Dr.  $864,  Cr.  $753.     Cash 
on  hand  by  actual  count  is  $50.     State  two  theories  that  would 
serve  as  a  guide  in  searching  for  the  error. 

31  Enter  in  a  cash-book  from  which  postings  are  made  direct 
to  the  double  entry  ledger,  the  following  transactions:     Feb.  18, 
1899.     Sold  merchandise  to  Al  Hoadley  for  cash  Si  18. 25;  paid 
my  note  in  favor  of  D.  Way  $100,  and  interest  $1.25;  paid  C.  B. 
Astor  for  merchandise  $216.30;  T.  Allen  paid  his  account  due 
May  18  $110,  less  discount  at  6%. 

32  Compute  the  cash  value  of  the  following  account  May 
31,  1898,  interest  at  5%: 

Dr.                                 JAMES  SMITH  Cr. 
1898                                                      1898 

April  25  Mdse  at  60  days.... $1000  !l  April  1  Cash $560 

i|  May  21  Cash 324 

JOURNAL 

33  (a)     Give  a   general  rule  for  journalizing   (determining 
debits  and  credits),     (b)  Show  how  this  rule  applies  to  the  jour- 


BOOKKEEPING  13 

nalizing  of  transactions  involving  (a)  bills  receivable,   (b)  bills 
payable. 

34  (a)     What  is  an  original  entry?     (b)  When  should  it  be 
made?     (c)  What  should  it  show?     (6)  Why  is  an  original  entry 
specially  important  ? 

35  Explain  the  advantage  of  controlling  accounts  and  special 
columns  in  books  of  original  entry. 

36  Explain  why  it  is  necessary  to  make  full  explanations  of 
business  transactions  in  connection  with  the  original  entries. 

37  (a)     Tell  how  to  journalize  (a)  bills  payable,  (b)  bills  re- 
ceivable,    (b)     Consider  interest  in  both  cases. 

38  (a)     Describe  a  business  transaction  the  journal  entry 
for  which  would  require  the  use  of  the  following  accounts :     Cash, 
Notes  Receivable,  Discount. 

(b)  Describe  a  business  transaction  the  journal  entry  for 
which  would  require  the  use  of  the  following  accounts :  William 
Grand,  Merchandise,  Notes  Payable. 

39  (a)     What  is  the  purpose  of  an  expense  account?     (b) 
What  items  appear  on  its  debit  side?     (c)  What  items  may  appear 
on  its  credit  side?     Give  examples  to  illustrate  each. 

40  (a)  What  are  the  journalizing  rules  for  personal  accounts? 
(b)  Explain  fully  the  advantages  to  be  gained  by  using  a  special 
column  journal,  (c)  Mention  two  kinds  of  entries  that  may  ap- 
pear on  the  debit  side  of  the  proprietor's  account. 

41  Give  a  rule  for  debiting  and  crediting  each  of  the  following : 
interest,  cash,  furniture  and  fixtures. 

42  (a)  Distinguish  between  an  expense  account  and  a  furni- 
ture and  fixtures  account  when  both  are  kept,     (b)  Which  of  these 
accounts  includes  the  other  when  only  one  is  kept?     (c)  Under 
what  circumstances  would  an  entry  appear  on  the  credit  side 
of  furniture  and  fixtures  account" 


14  UP  TO-DATE  REGENTS  QUESTIONS 

43  Rule  a  sheet  for  a  six  column  journal  and  illustrate  its 
use  by  correctly  entering  in  it  the  following:     John  Jones  com- 
menced business  April  1,  1987,  with  the  following  resources  and 
liabilities:  cash  $5000,  merchandise  $3500,  note  against  James 
Hart  $600,  note  in  favor  of  Henry  Morgan  $250,  account  in 
favor  of  Wilson  and  Son  $38. 

44  You  pay  your  30  day  note  for  $250  with  interest.     You 
receive  payment  on  James  Whelan's  $975  acceptance  10  days 
in  advance  of  maturity.     Write  the  journal  entries,  calculating 
interest  at  6%  in  each  case.     Give  the  reason  for  each  debit  and 
credit. 

45  (a)  Add  to  each  entry  given  below  an  explanation  that 
will  show  the  transaction  involved: 

(1)  Mdse $1600 

To  Henry  Grayson $1600 

(2)  Cash : $475 

To  Notes  receivable $450 

To  Interest $25 

(b)     Give  the  different  rules  of  debit  and  credit  applied  in 
making  the  entries  given  in  (a) . 

46  Describe  a  transaction  that  would  require  each  of  the 
following  journal  entries: 

a     Notes  receivable $490 

Merchandise  discount $10 

To  JohnReed $500 

b     Furniture  and  fixtures $375 

To  Notes  payable $200 

To  Henry  Hammond $175 

47  You  owe  Thomas  M.  Bailey,  Chicago,  111.,  $500.     Show  in 
detail  how  you  would  make  payment.     Illustrate.     Give  the 
entry  of  the  transaction  you  would  make  in  your  books. 


BOOKKEEPING  15 

48  John  A  very  draws  on  Samuel  Rose  in  favor  of  William 
Rider  for  $100  at  10  days  sight.     Make  the  proper  journal  entry 
for  each  of  the  three  parties. 

49  H.  M.  Kerr  and  O.  E.  Weir  are  partners  in  a  manufac- 
turing concern  under  the  firm  name  of  Kerr  &  Weir.     Their 
investments  are  as  follows:  H.   M.  Kerr  §30,000,  O.  E.  Weir 
$20,000.     They  decide  to  incorporate  their  business  with  a  cap- 
ital stock  of  $75,000,  consisting  of  750  shares  at  $100  a  share. 
The  partners  are  to  receive  paid  up  stock  for  their  respective 
interests  and  goodwill  as  follows;  H.  M.  Kerr  350  shares,  O.  E. 
Weir  250  shares.     A.  S.  Miller,  W.  G.  Burton  and  J.  M.  Ronan 
each  subscribe  for  10  shares.     The  rest  of  the  capital  stock,  120 
shares,  is  not  to  be  sold  till  later.     The  following  list  of  assets 
and  liabilities  of  the  old  firm  has  been  accepted  by  the  corpora- 
tion : 

Assets  Liabilities 

Accounts  receivable..     $12000     Accounts  payable $4800 

Raw  materials 9000     Notes  payable 1500 

Plant 9000 

Real  estate 10000 

Cash 7600 

Finished  goods 8700 

Make  the  necessary  journal  entries  (a)  to  close  the  books 
of  the  old  firm,  (6)  to  open  the  books  of  the  corporation.  (A 
new  set  of  books  is  to  be  used  by  the  corporation.) 

LEDGER 

50  (a)     Give  five  important  steps  in  closing  a  double  entry 
ledger.     (/?)     For  what  purpose  is  a'  ledger  closed  ? 

51  Mention  three  tests  that  may  be  applied  to  determine  the 
correctness  of  a  double  entry  ledger. 


16  UP-TO-DATE  REGENTS  QUESTIONS 

52  Explain  the  importance  of  placing  the  pages  of  the  ledger 
accounts  in  the  original  entry  books  as  you  post. 

53  How  would  you  determine  whether  an  item  on  the  Dr. 
side  of  the  ledger  is  an  asset  or  a  loss?     Give  illustrative  examples.  • 

54  During  the  year  ending  Dec.  31,   1915,  George  Butler's 
books  have  been  kept  by  single  entry.     Explain  fully  how  to 
ascertain  his  net  gain  for  the  year. 

55  Describe  a  method  of  keeping  the  merchandise  account 
of  a  business  so  that  the  correct  percentage  of  loss  or  gain  on 
sales  may  be  readily  ascertained. 

56  State  the  process  of  closing  a  merchandise  account  and 
illustrate,  using  the  following  data:  purchases  $3420,  sales  §4873, 
merchandise  on  hand  $2315. 

57  A  bookkeeper    made  the  following  errors  while  posting: 
a  debit  of  $47  to  Merchandise  was  posted  as  $74;  a  debit  of  $140 
to  Notes  Receivable  was  posted  to  the  credit  side  of  the  account 
and  a  debit  of  $75  to  Expense  was  omitted  entirely.     If  no  other 
errors  were  made,  how  much  would  the  ledger  be  out  of  balance 
and  which  side  of  the  trial  balance  would  be  the  larger? 

58  (a)     Two  ledgers  are  before  you.     One  is  the  ledger  of  a 
partnership   concern  just   before  the  partnership   is  converted 
into  a  corporation;  the  other  is  the  new  ledger  of  the  corporation. 
What  differences  should  you  find  in  the  accounts  in  the  two 
ledgers  ? 

(b)     In  what  way  does  the  disposition  of  the  net  profit  differ 
with  respect  to  partnerships  and  corporations? 

59  A  broker  buys  for  you  450  shares  of  B.  &  O.  R.  R.  stock 
Mar.  12,  1902  ©  104  and  sells  it  Apr.  11,  @  107J.     He  charges 
brokerage  \%  each  way  and  interest  at  6%  on  cost  of  stock. 
Show  the  account  properly  closed  in  the  broker's  ledger. 


BOOKKEEPING  17 

60  On  Jan.  1,  1914,  Albert  Hardy  began  business  with  a  cash 
investment  of    S2500.     During  the  year  he  made  the  following 
additional    investments:     May    1,    $500;    Aug.    15,    8200.     On 
Sept.  30  he  withdrew  $250.     On  Dec.    31  his  accounts  show  a 
loss  for  the  year  amounting  to  84197.33. 

Show  Mr.  Hardy's  ledger  account  closed  up  at  the  end  of  the 
year. 

61  A  bookkeeper  made  the  following  journal  entries: 
Cash 82500 

To  William  Brown 82500 

Expense 837.50 

To  Cash 837.50 

Notes  receivable $98.25 

To  Henry  Brown 898.25 

Mdse 8125 

To  Bremmer  &  Co 8125 

He  then  posted  the  above  entries  as  follows: 

Cash  William    Brown  Expense 

N8250  1.50  82500  837.50 

98.25 

Notes  Rec.  Bremmer  &  Co.  Mdse 


898.25  8125 

8125 

Copy  the  ledger  accounts  given  above,  check  the  posting  and 
tell  what  errors  were  made  in  the  posting. 

62     Show  how  a  double-entry  ledger  affords  a  better  proof 
of  its  correctness  than  a  single-entry  ledger. 


18 


UP-TO-DATE  REGENTS  QUESTIONS 


BANK  BOOK 


63  Rule  a  page  of  your  bank  pass  book  and  make  entries 
in  it  involving  (a)  cash  deposited,  (b)  a  note  discounted. 

64  On  January  10  Hiram  Henning's  check  book  showed  a 
bank  balance  of  $3245.10.     On  the  same  day  his  pass  book  show- 
ing a  balance  of  $3698.40,  was  returned  by  the  bank.     The  fol- 
lowing checks  were  not  returned  by  the  bank:  no.  6,  $43.10;  no. 
8,  $25.90;  no.  10,  $36.27;  no.  13.  $75;  no.  18,  $120;  no.  23,  $80; 
no.  27,  $73.03. 

Prepare  a  statement  verifying  both  the  pass  book  balance  and 
the  check  book  balance. 


65 


HALE  &  ELKINS 


1916 

1916 

Jan.  5 

Goods  returned 

$50 

Jan.  1 

Invoice  3|ion 

30 

$510 

50 

Freight  prepaid 

on  above 

in- 

voice 

17 

?0 

! 

The  above  represents  Howard  Thompson's  account  with 
Hale  &  Elkins. 

Mr.  Thompson  resides  in  Elmira,  N.  Y.,  and  transacts  all  of  his 
business  at  the  Cornmercial  National  Bank  of  that  city,  Henry 
Simmons,  cashier.  On  January  10  he  gives  his  check  to  this 
bank  in  payment  for  a  bank  draft  drawn  on  the  Trades  Bank  of 
Chicago  and  payable  to  Hale  &  Elkins  for  an  amount  sufficient 
to  settle  the  above  account. 

Write  the  check  and  the  bank  draft  called  for  in  the  above 
transaction. 


BOOKKEEPING  19 

66  (a)     What  are  the  usual  steps  taken  in  opening  a  bank 
account?     (b)     What   information   should'  appear  on   a   check 
book  stub?     Why? 

67  (a)     How  should  a  depositor  keep  his  account  of  cash  in 
bank?     (6)     How   does    the   bank  make  settlement?     (c)     In 
case  many  checks  are  drawn  daily,  how  would  the  depositor 
reconcile  his  account  with  the  bank's  books? 

68  Explain  each  of  the  following:     (a)  deposit  slip,  (b)  bank 
pass  book,  (c)  check  book  stub. 

69  Write  a  bank  note  for  $300,  dated  to-day,  due  in  60  days, 
of  which  you  are  the  maker  and  John  Carter  is  the  payee. 

70  Give  ruling  and  headings  for  a  folio  of  a  bill  book  (either 
bills  receivable  or  bills  payable). 

71  Reconcile  the  following  bank  account:  balance  per  check 
book  $972.13;  balance  per  pass  book  $1986.24;  checks  outstand- 
ing $423.89,  $63.14,  $263.84,  $73.28,  $276.88;  items  not  entered 
in  the  check  book,  interest  on  bank  balance  $14.23  and  exchange 
on  out  of  town  checks  $2.15. 

PROMISSORY   NOTES 

72  Define  indorsement,  accomodation  note,  acceptance,  nego- 
tiable paper,  protest. 

73  Write  the  note  required  by  the  following  data: 
Date:     December  30,   1916 

Amount:     $487.62 

Time:     60  days 

Payee:     John  L.  Carson 

74  On  Tan.  16  John  Longley  borrows  $500  from  the  Mohawk 
National  Bank  on  his  60  days  note,  giving  your  name  as  security. 

a     Write  the  note  in  complete  form. 


20  UP-TO-DATE  REGENTS  QUESTIONS 

b     Explain  to  what  extent  you  are  liable  on  the  note. 

75  Write    (a)  promissory  note  of  which  Alfred  Brown  is  the 
maker  and  James  Lockwood  the  payee,  (b)  a  sight  draft  of  which 
you  are  the  drawer,  Philip  Rowe  the  payee  and  William  Wallace 
the  drawee. 

76  Write  a  promissory  note  of  which  you  are  the  maker,  John 
Jones  the  payee,  and  James  Smith  the  indorser. 

77  Illustrate  the  form  and  state  the  purpose  of  each  of  the 
following:     (a)  indorsement  in  blank,   (b)  indorsement  in  full. 
(c)  indorsement  without  recourse. 

78  •  You  hold  a  promissory  note  payable  to  your  order:  write 
(a)  an  indorsement  in  full,  (b)  an  indorsement  in  blank,  (c)  an 
indorsement  without  recourse,  as  each  would  appear  on  the  back 
of  the  note  if  used.     State  the  particular  object  of  each  form  of 
indorsement. 

79  You  hold  a  promissory  note  payable  to  your  order  which 
you  wish  to  transfer  without  becoming  responsible  for  its  pay- 
ment,    (a)  Write  the  proper  indorsement,     (b)  Mention  and  il- 
lustrate two  other  kinds  of  indorsements. 

80  A  promissory  note  for  $485,  with  interest  at  5%,  given 
Feb.  1,  1897,  bears  the  following  indorsements:  July  15,  1897, 
$12;  Sept.  1,  1897,  $25;  Nov.  24,  1897,  $65.     How  much  is  due 
on  settlement  Jan.  25,  1898? 

81  A  promissory  note  for  $250  draws  interest  at  6%  from  June 
15,  1898.     How  much  would  remain  due  Jan.  1,  1899  if  it  bore 
the  following  indorsements:     July   1,    1898,   $50;    October    15, 
1898,  $125? 

82  On  a  promissory  note  for  $1800,  dated  Jan.  2,  1900  and 
bearing  4%  interest,  the  following  payments  were  made:     Feb. 
17,  $75,  May  2,  $50,  July  12,  $125.     How  much  was  due  Jan.  2, 
1901? 


BOOKKEEPING  21 

83  A  promissory  note  for  SI 250,  dated  May  5,  1900,  bears 
the  following  indorsements:  Aug.  15,  1900,  $125;  Jan.  4,  1901, 
§250;  April  19,  1901,  $143.     How  much  is  due  June  1.  1901? 

84  On  a.  promissory  note  for  $1500,  dated  Jan.  11,  1901  and 
bearing  interest  at  5%,  the  following  payments  have  been  made: 
Feb.  26,  SI 75,  May  16,  S10,  July  16,  S210.     How  much  was  due 
Jan.  11,  1902? 

85  On  a  promissory  note  for  $1200,  dated  Jan.  3,  1898  and 
bearing  5%  interest,  the  following  payments  have  been  made: 
Feb.  15,  $50,  Aug.  1,  S15,  Oct.  1,  $250.     How  much  was  due 
Jan.  3,  1899? 

86  A  note  for  $725,  with  interest  at  6%,  was  given  Jan.  10, 
1897;  payments  were  made  as  follows:     Aug.  1,  $15,  Aug.  30, 
S125,  Sept.  25,  $236.     How  much  was  due  at  settlement  Oct.  30? 

87  A  note  for  $1250  with  interest  at  5%  was  given  January 
15,    1897.     Payments  have  been  made  as  follows:     April   15, 
$25;  June  19,  $60;  August  31,  $200.     How  much  is  due  Sept. 
27,  1897? 

88  On  a  promissory  note  for  $1500,  dated  Jan.  11,  1899  and 
bearing  5%  interest,  the  following  payments  have  been  made; 
Feb.  1,  $75,  July  1,  $50,  Nov.  16,  $150.     How  much  was  due 
Jan. 11,  1900? 

89  On  a  promissory  note  for  $1527,  dated  Sept.  1,  1898,  and 
bearing  interest  at  4J%,  the  following  payments  have  been  made: 
Oct.  15,  1898,  $125;  Nov.  1,  1898;  Dec.  15,  1898,  $5;  Apr.  1,  1899, 
$250.     How  much  is  due  at  settlement  June  15,  1899? 

90  On  a  promissory  note  for  $1800,  dated  Feb.  1,  1899  and 
bearing  5%  interest,  the  following  payments  have  been  made: 
Mar.  16,  $50;  May  1,  $100;  July  26,  $25;  Oct.  11,  $125.     How 
much  was  due  Feb.  1,  1900? 


22  UP-TO-DATE  REGENTS  QUESTIONS 

91  A  promissory  note  for  $800,  dated  January  6,  1896,  bears 
interest  at  5%.     The  following  payments  have  been  made  on 
it:     June  1,  1896..  §15;  September  1,  1896,  $40;  January  5,  1897, 
$150.     How  much  is  due  Feb.  5,  1897? 

92  A  promissory  note  for  $650  is  made  Sept.  1,  1897,  interest 
at  5%.     Payments  have  been  made  as  follows:     Jan.  2,  1898, 
$10;  Feb.  1,  1898,  $35;  July  1,  1898,  $125.     How  much  is  due 
at  settlement  Sept.  1,  1898? 

93  (a)     What  is  the  present  value  of  a  promissory  note  for 
$500,  dated  January  1,  1897,  payable  one  year  after  date  and 
bearing  interest  at  6%?     (b)  If  such  a  note  were  payable  to  your 
order  state  how  you  could  transfer  it  without  becoming  respon- 
sible for  its  payment. 

DRAFTS  AND  BILLS  OF  EXCHANGE 

94  Define  (a)  draft,  (b)  time  draft,  (c)  sight  draft,  (d)  bill  of 
exchange. 

95  What  is  the  difference  in  meaning  between   "draw  at 
sight  in  10  days"  and  "draw  at  10  days  sight"? 

96  You  have  just  accepted  a  draft  and  forwarded  the  same 
to  O.  K.  Adams,  Baltimore,  Md.,  who  drew  on  you  at  10  days 
sight  for  balance  of  account  due;  face  of  draft  $850,  date  of  draft 
January  18,  1916.     Write  the  draft  in  the  complete  form  in  whcih 
it  is  forwarded. 

97  James  Griffin  owes  George  Adams  $80  and  George  Adams 
owes  Frank  Williams  $80.     Write  a  sight  draft  that  will  settle 
all  accounts.     Designate  drawer,  drawee  and  payee. 

98  William  Brown  owes  Oliver  Stewart  $25  and  Oliver  Stew- 
art owes  James  Perkins  $25.     Write  a  sight  draft  which  when 
paid  will  settle  all  the  accounts. 


BOOKKEEPING  23 

99  You  draw  a  draft  of  $500  at  30  days  after  date,  in  favor  of 
Porter  Carr,  on  Edmund  Strong,  who  accepts  the  draft.     Write 
the  journal  entries  of  the  several  parties. 

100  Write  a  10  days  sight  draft  of  Jones  Brothers  in  favor 
of  Martin  Fink  for  $32. 

101  Y\rrite  a  three  party  time  draft  showing  acceptance  and 
make  the  journal  entries  of  each  party  to  the  draft. 

102  You  owe  Jacob  Astor  $100  and  William  Wild  owes  you 
$100.     Write  a  sight  draft  to  balance  these  accounts. 

103  Find  the  cost  of  a  draft  on  London  for  £150,  exchange 
at  4.89.     What  does  this  rate  of  exchange  indicate  as  to  the  bal- 
ance of  trade?     Explain  fully. 

104  An  importer  in  New  York  city  owes  6230  lire  in  Rome; 
what  will  it  cost  him  to  remit  (a)  direct  to  Rome  at  5.27  lire  a 
dollar,  (6)  through  London  at  $4.88  a  £,  there  buying  exchange 
on  Rome  at  25.20  lire  a  £? 

105  A  merchant  in  New  York  city  owes  5260  francs  in  Paris; 
what  will  it  cost  to  remit  (a)  direct  to  Paris  at  5.15  fr.  a  dollar, 
(&)  through  London  at  4.89,  there  buying  exchange  on  Paris  at 
25.19  fr.  a  pound  sterling? 

106  Find  the  cost  of  a  draft  on  London  for  £15  4s.  6d.  ex- 
change at  $4.86,  brokerage  -$%• 

BILL  MAKING 

107  W.  E.  Chase,  Riverhead,  N.  Y.,  ordered  the  following 
list  of  goods  from  Arlington,  Warren  &  Co.,    169  Broadway, 
New  York:     25  doz.  men's  linen  handkerchiefs  @  $1.87i;   15 
doz.  women's  embroidered  handkerchiefs  @  $2.121-;  8  doz.  child- 
ren's lawn  handkerchiefs  @  85 i\  6-1  doz.  pairs  men's  kid  gloves, 
assorted  sizes,  @  $11.75;  7  doz.  pairs  men's  suede  gloves,  sizes 
8  to  10,  @  $7.25. 


24  UP-TO-DATE  REGENTS  QUESTIONS 


a  Under  date  of  January  5,  make  out  a  bill  for  the  above 
order,  terms  3%  cash  in  10  days. 

b  Make  the  entries  for  both  parties  when  the  bill  is  paid  on 
January  15  in  accordance  with  the  terms. 

108  Write  in  proper  form  a  bill  of  at  least  three  items  sold 
on  which  there  has  been  a  partial  payment  in  cash  previous  to 
this  date.     Assume  that  the  bill  is  settled  and  receipted  to-day. 

109  Make  in  due  form  a  bill  of  merchandise  sold  by  you  con- 
taining at  least  four  items.     Assume  that  the  bill  has  been  paid 
and  write  the  receipt. 

110  Bought  a  bill  of  goods  amounting  to  $425  list  price,  com- 
mercial discounts  of  20,  10,  10  and  5,  with  3f  days  credit,  or  an 
additional  5  off  for  cash ;  find  the  net  cash  price. 

111  Make  a  receipted  bill  in  proper  form  of  the  following 
items:     John  Roe  bought  of  a  student,  September  1,   1897,  2 
barrels  flour  at  §5.50;  September  3,  100  Ibs.  meal  at  75  cents; 
September  7,  50  Ibs.  sugar  at  5 A-  cents;  September  9,  4  Ibs.  coffee 
at  35  cents.     Paid  by  cash  September  14. 

112  John  Brown  bought  of  William  Johnson  the  following: 
Feb.  1,  1901,  2  barrels  of  flour  @  $5.75;  Feb.  5,  50  pounds  corn 
meal  @  4.V  cents;  Feb.  7,  100  pounds  sugar  @  6  cents;  Feb.  8, 
6  pounds  coffee  @  38  cents;  Feb.  11,  2  pounds  tea  @  80  cents. 
A  cash  payment  of  $15  was  made  on  Feb.  28,  1901.     Balance 
paid  March  27,  1901.     Make  a  receipted  bill  of  these  items  in 
proper  form. 

113  Write  in  proper  form  a  receipted  bill  of  at  least  five  items 
sold.     Assume  that  a  cash  payment  for  part  of  the  amount  was 
made  August  24,  1900  and  the  balance  paid  September  26,  1900. 

114  Make  a  receipted  bill  of  the  following :     Sold  James  Wat- 
son as  follows:.   Jan.  2,  1896,  1  barrel  flour  @  $4.50;  Jan.  7,  3 


BOOKKEEPING  25 

Ibs.  coffee  @  40  cents;  10  Ibs.  butter  @  23  cents  a  lb.;  Jan.  10, 
20  Ibs  sugar  @  5i  cents  a  lb;  5  gallons  kerosene  oil  @  12  cents  a 
gallon. 

EQUATION  OF  ACCOUNTS 

115         Dr.  JOHN  ALDEX  Cr. 

1X98                                                             1898 
Jan.     IS  To  mdse $250  00         Feb.    11    By  cash S1SS   50 


Mar. 

May    MO  32 


Apr.   -27  IX)  31 

June  15  By  mdse 170  no 

^y-  "  \.^i     * 

Find  the  average  time  for  the  payment  of  the  above  account. 
If  the  account  is  settle  to-day,  with  interest  at  6%,  how  much 
should  be  paid? 


116     Find  the  equated  time  of  payment  of  the 
count  : 
Dr.                       WM.  JONES                 Cr. 

following  ac- 

1896 

5  Mv 
1   If 

Mdse  at  :]()  days  . 
at  10  days 

-  00 
tH)  00 

10   [e     Ca^n  

$100  00 

15  11 

40  00 

x  j  L 

in  s 

1  '      at  20  days  . 

SO   00 

1  O            *' 

55  00 

i'  X 

at  .'JO  days. 

50   00 

117  Find  the  equated  time  for  the  payment  of  the  following 
bill:     Sold  J.   M.   Richards  merchandise  as  follows:    ,Oct.   11, 
1897,  $468.25  on  4  months  credit;  Nov.  26,  1897,  $365.50  on  6 
months  credit;  Dec.  16,  1897,  $623.25  on  6  months  credit;  Jan. 
4,  1898,  $536  on  5  months  credit;  Jan.  17,  1898,  $435.90  on  6 
months  credit. 

118  Find  the  equated  time  for  paying  the  following  account: 
William  Jones  bought  merchandise  as  follows:     May  20  at  30 
days  $486.72,  June  18  at  60  days  $712.28,  July  14  at  90  days, 
$513.28,  August  18  at  90  days  $1287.72.     Paid  cash  as  follows: 
May  24,  $642.140  August  24,  $467.12;  September  10,  $357.86; 
October  19,  $532.88. 


26  UP-TO-DATE  KEGENTS  QUESTIONS 

119  Find  the  equated  time  of  payment  of  the  following  ac- 
count : 

Sold  Richard  Jones  merchandise  as  follows : 
Jan.     4  $     50  at  90  days 
Feb.  15       150  at  90  days 
Mar.   3         80  at  30  days 
May  10       200  at  60  days 

LETTER  WRITING 

120  Write  a  letter  to  Smith  &  Co.,  Chicago,  111.,  ordering 
1000  bushels  of  wheat.     State  how  and  when  you  wish  it  shipped 
and  the  limit  as  to  price,  also  giving  such  references  as  would  be 
necessary  if  you  were  unknown  to  the  firm. 

121  You  have  received  the  following  telegram  from  Fisher 
&   Martin,    Chicago,    111.:     Goods  received.     Piece  six  not  as 
ordered.     Explain.     Entire  lot  damaged  by  water. 

After  investigating  the  matter  write  an  explanatory  letter. 

122  You  wish  to  retire  from  the  wholesale  provision  business. 
Write  a  letter  to  Thomas  Wolverton,  Poughkeepsie,  N.  Y.,  as 
a  possible  purchaser,   giving  necessary  details  as  to  stock  on 
hand,  volume  of  business  and  gain  during  past  year.     Mention 
the  price  for  which  you  are  willing  to  sell. 

123  Write  a  letter  to  Fish  &  Wilson,  making  application  for  a 
position  as  bookkeeper.     State  your  qualifications  for  the  place 
and  give  references. 

124  Write  a  letter  of  guaranty  to  Farnum  Bros.,  assuming  re- 
sponsibility for  payment  of  bill  of  goods  purchased  by  Carl  Jones 
to  the  amount  of  §250. 

125  Write  in  proper  form  an  answer  to  the  following  adver- 
tisement:    Wanted — An    expert    accountant.     State    qualifica- 


BOOKKEEPING  •>: 

tions  and  give  references.     Address  W.  F.  Benedict,  1  Broadway, 
New  York. 

126  Write  a  letter  applying  to  Watson  &  Wait  for  a  position 
as  bookkeeper,  stating  the  facts  that  should  be  given  in  such  a 
letter. 

127  Write  to  Arthur  Williams,  a  letter  of  recommendation 
for  John  Holbrook  of  Schenectady,  expert  bookkeeper.     Give 
special  attention  to  English,  punctuation  and  form. 

128  Write  a  business  letter  ordering  goods  on  account  and 
giving  references  as  to  your  credit. 

BALANCE  SHEET  AND  TRIAL  BALANCE 

129  (a)     Tell  how  one  should  proceed  in  preparing  a  balance 
sheet  (not  the  six  column  form).     (&)     What  are  the  three  im- 
portant items  of  information  to  be  obtained  from  the  balance 
sheet? 

130  (a)     Describe  two  methods  of  making  a  trial  balance. 
(&)  What  advantage  has  each  over  the  other?     (c)  How  often 
should  a  trial  balance  be  made?     (d)  Give  reasons. 

131  (a)     Give  the  names  of  three  accounts  whose  balances 
show  resources  or  liabilities,     (b)  Mention  two  accounts  whose 
balances  show  losses  or  gains. 

132  (a)     A  trial  balance  may  be  made  either  by  taking  the 
total  footings  of  all  the  ledger  accounts  or  by  taking  the  balances 
of  accounts  only,     (b)  Which  is  the  better  method  and  why? 

133  (a)     Mention  two  accounts  which  if  correct  can  never 
show  a  credit  balance ;  one  which  if  correct  can  never  show  a  debit 
balance.     Give  the  reason  in  each  case. 

134  Mention  three  possible  errors  that  would  prevent  a  cor- 
rect trial  balance  and  state  what  steps  should  be  taken  to  discover 
such  errors. 


28  UP-TO-DATE  REGENTS  QUESTIONS 

135  From  the  following  data  make  ~a  balance  sheet  showing 
the  gain  or  loss  and  the  present  worth  of  the  business: 

Ledger  Footings 

Dr.  Cr. 

Proprietor $8000 

Cash , $12460         $10175 

Merchandise $16520         S14240 

Bills  payable $2500  $2800 

Bills  receivable $6000  82400 

Expense $640 

James  Robinson.' $460  $400 

William  Brown $180  $747 

Merchandise  on  hand  amts.  to  ....  S4685 

136  George  Atkins  wishes  to  change  his  bookkeeping  from 
single  entry  to  double  entry,  continuing  the  use  of  the  old  ledger, 
the  open  accounts  of  which  show  the  following  footings : 

George  Atkins  (proprieter)  $5218.45 

A.  P.  White $314.50  113.25 

Charles  Martin 940.60  500 

Seavey  &  Co 1220.40 

John  Jackson -. 526.80  900.15 

Other  resources  and  liabilities  are  as  follows:  merchandise 

$3017.50;  cash  $1855.25;  real  estate  $4250;  bills  receivable  $2800; 

bills  payable  $1550.25.     Prepare  a  trial  balance  of  the  ledger  as 

it  would  appear  when  changed  to  the  double  entry  system,  and 

state  the  proprietor's  present  worth. 

137  In  closing  a  ledger  the  cash  on  hand  was  $3250.25  and 
merchandise  per  inventory  was  $2616.46;  the  balances  of  ledger 
accounts  were  as  follows:  merchandise  debit  $827.56,  bills  payable 
credit   $1125.84,   bills   receivable   debit   $1812.71,   John   Sweet 
credit  $1249.16,  James  Reese  debit  $321.83,  Samuel  Smiles  credit 


BOOKKEEPING  29 

S298.33,  William  Russell  debit  $1866.91,  discount  credit  $405.93; 
the  original  investment  was  $5000.  Make  a  trial  balance  and  a 
balance  sheet. 

138  From  the  following  ledger  footings  and  inventory  make 
a  balance-sheet  showing  the  resources  and  the  liabilities,  the 
proprietor's  present  worth  and  net  gain  or  loss: 

Dr.  Cr. 

Proprietor S5500 

Cash S9500  6400 

Merchandise 8775  7100 

Bills  receivable 1500  500 

Bills  payable 675  900 

James  Roberts 400  525 

Expense 595  50 

JohnHillis 600  325 

Jay  Williams 150  895 

Merchandise  on  hand  per  inventory  $4500. 

139  From  the  following  data  make  a  statement  or  a  balance 
sheet  showing  in  detail  resources  and  liabilities,  the  gains  and 
losses  and  the  present  worth  of  the  business : 

Dr.  Cr. 

Proprietor S8000 

Cash 812560  9240 

Merchandise 18927  16295 

Bills  payable 2500  2800 

Bills  receivable 900  400 

Shipment  to  Boston  (goods  all 

sold) 650  875 

Wheat 4200  4000 

Johnson  &  Stokes 2119  246 

A.B.Wilson..                                              180  180 


30  UP-TO-DATE  BEGENTS  QUESTIONS 

Inventory  shows  on  hand  general  merchandise  worth  $8427 
and  1000  bushels  of  wheat  worth  75  cents  a  bushel. 

140  F.  M.  Barker  invests  $3000  and  Edward  Everts  $2000 
in  a  partnership  business,  gains  and  losses  to  be  shared  in  pro- 
portion to  investment.     At  the  end  of  one  year  the  ledger  shows 
the  following  footings :  Dr.  Cr. 

F.  M.  Barker $3000 

Edward  Everts 2000 

Cash $15000         12000 

Merchandise 22000         21570 

Bills  payable 2500  2500 

Bills  receivable 4000  2500 

Expense 1420 

Jones  Brothers 1590  3580 

Wheeler  &  Adams 650 

The  inventory  shows  merchandise  on  hand  worth  $5800.     (a) 

prepare  a  balance-sheet  showing  the  loss  or  gain  and  the  net 

capital  of  each  partner. 

(6)     Describe  the  process  of  closing  a  double  entry  ledger. 

(c)     Close  the  merchandise  account  of  the  ledger  mentioned  in 

this  question. 

141  From  the  following  ledger  balances  determine  the  gains 

and  losses,  the  resources,  liabilities  and  present  worth: 

Dr.  Cr. 

Proprietor  (investment) $5000 

Merchandise $8250  6480 

Cash 9560  8132 

Bills  receivable 1550 

Bills  payable 780  880 

Expense 530  50 

James  Hill 425  150 

Walter  Wilson 630  840 

Jones  &  Smith...  193 


BOOKKEEPING  31 

Merchandise  on  hand  per  inventory  $4125. 

142  A  puts  $3000  and  B  $2000  into  a  partnership  business. 
At  the  end  of  one  year  their  ledger  shows  the  following  balances: 

Dr.  Cr. 

Cash $10280         $8400 

Merchandise 9150  9460 

Bills  receivable 500  200 

Jones  Bros 150  985 

Smith  &  Wilson 1640 

Expense 495 

Inventory  shows  merchandise  on  hand  worth  $2500. 
How  much  should  each  partner  receive  if  the  property  is  divid- 
ed in  proportion  to  the  investment? 

143  From  the  following  ledger  footings  and  inventory  deter- 
mine the  gains  and  losses,  the  resources  and  liabilities,  and  the 
present  worth  of  the  business: 

Dr.  Cr. 

Proprietor $10000 

Merchandise $14725  12580 

Cash 17256  13096 

Expense 1648 

Bills  payable 2000  2000 

Bills  receivable 8280          50000 

Interest  and  discotint 148 

W.A.Wallace 175 

S.  B.  Kraft 1556 

[Merchandise  on  hand  per  inventory  $7640. 

144  From  the  following  ledger  balances  and  inventories  make 
a  balance-sheet  showing  the  resources  and  liabilities,  the  pro- 
prietor's net  capital  (present  worth)  and  net  gain  or  loss; 


32  UP-TO  DATE  KEGENTS  QUESTIONS 

Dr.  Cr. 

Proprietor 819778  19 

M.  M.  Joslyn 8412  05 

H.  P.  Martin 171  04 

E.  D.  Rossmann 688  05 

Merchandise 163  31 

Cash 4504  24 

Bills  receivable 500  00 

Bills  payable 500  00 

Real  estate 15059  17 

Store  fixtures 61  50 

Interest 4  67 

Expense 99  60 

On  hand  per  inventories      merchandise   $4965;   real   estate 
$15,000;  store  fixtures  $60. 

145     From  the  following  data  make  a  balance  sheet: 

Ledger  Footings 

Dr.  Cr. 

Proprietor $1500  89500 

Cash 18750  12972 

Merchandise 16470  14280 

Bills  receivable 2140  1000 

Bills  payable 1000  4640 

Interest  and  discount 328  216 

Expense 1964  241 

Shipment  to  Chicago 580  636 

Johnson  &  Robbins 1506  853 

J.  S.  Wilson 100 

Merchandise  on  hand  per  inventory  $5427. 


BOOKKEEPING  33 

146  Find  the  present  worth  and  the  net  gain  or  loss  shown 
by  the  following  ledger  footings: 

Dr.  Cr. 

Proprietor 86250 

Merchandise S8275  5486 

Cash 5293  4112 

Bills  payable 260  560 

Bills  receivable 1400 

Expense 390 

Abram  Morse 652  135 

Wilson  Brothers 459  186 

Inventory  shows  merchandise  on  hand  worth  $5263. 

147  From  the  following  ledger  footings  and  inventory  make 
a  balance  sheet  showing  the  resources  and  liabilities  and  the 
proprietor's  present  worth  and  net  gain  or  loss: 

Dr.  Cr. 

Proprietor $4000 

Cash S8450  5850 

Merchandise 9500  8000 

Bills  payable 500  10000 

James  Green 2500 

Bills  receivable 20000  500 

Expense 350  100 

*  William  Jay 1200  200 

Lewis  Hayne 150 

Merchandise  per  inventory  $2500. 

148  In  a  certain  ledger  the  footings  of  the  accounts  which 
show  resources  and  liabilities  are  as  follows: 


34  UP-TO-DATE  EEGEKTS  QUESTIONS 

Dr.  Cr. 

Cash $8536  63     §2138  17 

Bills  receivable 3650  00       2400  00 

Merchandise  (inventory) 7968  33 

Personal  accounts 840  80       3474  41 

Bills  payable -. 500  00         850  00 

The  original  investment  was  $10,000.     Find  the  present  worth 
and  the  net  gain  or  loss. 

149  From  the  following  data  make  a  balance  sheet  showing 
the  gain  or  loss  and  the  present  worth  of  the  business : 

Dr.  Cr. 

Proprietor §4000 

Merchandise $8260  7120 

Cash 6230  5088 

Bills  receivable 3000  1200 

Bills  payable 1250  1400 

Expense 320 

Wilson  Burr 90  373 

John  Bangs 231  200 

Merchandise  on  hand  per  inventory  $2342. 

150  From    the   following   ledger    balances    and  inventories 
make  a  balance  sheet  showing  resources  and  liabilities,  the  pro- 
prietor's net  capital  (present  worth)  and  net  gain  or  loss: 

Dr.  Cr. 

Proprietor $5768  50 

Cash $2763  15 

Merchandise 3600  48 

Bills  receivable .           575  50 

Bills  payable 931  56 

Expense 382 

John  Loren 105  25 

John  Philips 1550 


BOOKKEEPING  35 

Furniture  and  fixtures 590  40 

Interest 7  61 

Ralph  Johnson 240  89 

Inventories:  merchandise  $6400;  furniture  and  fixtures  $450. 

151  M.  O.  Banker  invested  $4000  and  F.  J.  Eaton  $6000  in 
partnership  business,  gains  and  losses  to  be  shared  in  proportion 
to  investment.     At  the  end  of  one  year  the  ledger  shows  the 
following  footings : 

Dr.  Cr. 

M.  O.  Barker $4000 

F.W.Eaton 6000 

Cash 812000  10000 

Merchandise 2850  22700 

Bills  payable 2000  2500 

Bills  receivable. . .  i 5500  3000 

Expense 1400 

Edward  Everts 1900  3500 

James  Watson 650 

Inventories:  merchandise  $9500,  expense  $1000. 

Prepare  a  balance-sheet  in  proper  form,  showing  net  capital 
and  net  gain  or  loss  of  each  partner. 

152  From  the  following  ledger  footings  and  inventories  make 
a  balance  sheet: 

Dr.  Cr. 

Proprietor $825  $9  000 

Cash 11505  15  9  897  50 

Merchandise 16981  79  1248934 

Bills  payable , 3650  4  010  40 

Bills  receivable 5480  4  283 

Interest 75  12  89  75 

Trade  discount..  13333  18960 


36  UP-TO-DATE  EEGENTS  QUESTIONS 

• 

Furniture  and  fixtures 650 

Expense 140 

Peter  White....  127650         84740 

Malcolm  Jones 917  09       1032  89 

George  Goldring 804  598  89 

Inventories:  merchandise  $6575;  furniture  and  fixtures  $500. 

153  Find  from  the  following  ledger  footings  the  net  gain 
or  loss,  and  the  present  worth  of  the  business: 

Dr.  Cr. 

Student $4000 

Merchandise $1000  586 

William  Jones 855  75 

Expense 24 

James  Wilson 150  80 

Commission 5^ 

Bills  payable 125  200 

Shipment  to  Chicago 1640 

Cash 2,428  1225 

154  From  the  following  balances  of  accounts  and  inventory 
(the  proprietor's  account   being  omitted)    determine  the  pro- 
prietor's net  investment,  the  gain  or  loss  and  the  present  worth: 

Dr.  Cr. 

Cash $4197  03 

Merchandise 1035  06 

Bills  receivable. . , 459  n 

Bills  payable $133  55 

John  L.  Stern 73  50 

R.W.  Fisk&Co 525 

Expense 264  25 

Interest  and  discount 4  65 

E.  N.  Jones&Co 99^10 


BOOKKEEPING 


37 


Cr. 

S22350 
51723 v 
8964 
2500 
200' 
175' 
2967 


ake 


Merchandise  on  hand  $935.82. 

155  At  the  close  of  a  year's  business  a  ledger  shows  the  fol- 
lowing footings : 

Dr. 

Cash 828560 

Merchandise 48892 

Bills  payable 7894 

Bills  receivable 5000 

Interest  and  discount 420 

Expense 1250 

Personal  accounts 6863 

Stock  (original  investment) 

Merchandise  on  hand  per  inventory  is  worth  $65001. 
a  statement  showing  gain  or  loss  and  present  worth. 

156  Make  a  balance  sheet  from  the  following  ledger  footings 
and  inventories : 

John  Smith,  proprietor 

Cash 

Merchandise 

Furniture  and  fixtures 

Bills  payable 

Bills  receivable. . . . : 

Expense 

Interest 

Mdse  discount 

R.  E.  Dixon 

Semuel  Brown , 

Roscoe  Davis 

George  Warner 

Inventories:     merchandise    $2724.60, 
$735,  expense  $166.50. 


$150 

S4285  88 

5622  10 

3986  60 

4235  75 

1750  25 

750 

500 

1250 

2796  80 

1970 

210 

9  33 

15  40 

16  25 

10 

825  40 

1577  60 

1050 

985 

375 

.800 

furniture 

and  fixtures 

38  UP-TO-DATE  REGENTS  QUESTIONS 

157  Prepare  a  six  column  balance  sheet  from  the  folio  win 
footings  and  inventories: 

Dr.  Cr. 

Proprietor $8626 

Mdse $3158  50  218  45 

Furniture  and  fixtures 642  50 

Bills  payable 708  923 

Interest  and  discount 5  93  2  97 

Loss  and  gain 33  50 

Cash 6443  14  986  66 

Expense .41   13 

C.  C.  Jones 280 

Inventories  are  merchandise  $3165,  furniture  and  fixtures, 
$640,  expense  $15,50 

158  Show  the  Loss  and  Gain  account  and  the  proprietors' 
accounts  that  would  result  from  closing  the  books  of  Dean  & 
Ford  for  the  year  ending  Dec.  31,  1909. 

The  open  accounts  and  their  respective  footings  were  as  fol- 
lows: W.  E.  Dean,  proprietor,  Dr.  $700,  Cr.  $10,000;  H.  A.  Ford, 
proprietor,  Dr.  $950,  Cr.  $10,000;  Mdse  Dr.  $29,105,  Cr.  $20,016. 
10;  Furniture  and  Fixtures  Dr.  $785.30,  Cr.  $50;  Bills  Payable 
Dr.  $7789,  Cr. $8567. 50;  Bills  Receivable  Dr.  $12,000,  Cr.  $11,200; 
Joseph  Wilkins  Dr.  $590.20,  Cr.  $786.45;  William  Porter  Dr. 
$659.80,  Cr.  $434.25;  Expense  Dr.  $536.28;  Insurance  Dr.  $125; 
Mdse  Discount  Dr.  $676.55,  Cr.  $1321,05;  Interest  and  Discount 
Dr.  $701.40,  Cr.  $529.90.  The  cashbook  feotings  were  Dr. 
$25,441.20,  Cr.  $17,154.93.  Inventories  were  mdse  $14,397.68, 
furniture  and  fixtures  $718.10,  expense  $45.75. 

159  (a)     Make  cashbook  and  journal  entries  of  the  following 
transactions  in  form  for  posting  directly  to  the  double  entry 


BOOKKEEPING  39 

ledger  (Enter  all  cash  items  in  cashbook;  post  cash  items  from 
cashbook  only) : 

June  1,  1904.  Clarence  White  began  a  wholesale  grocery 
business  in  Troy  N.  Y.  with  an  investment  of  $18,000  cash. 

June  2.  Bought  the  stock  of  Dawes  &  Co.  for  $12,750  and 
their  furniture  and  fixtures  for  $1050,  paying  cash. 

June  3.  Bought  of  John  D.  Waterhouse,  New  York,  25  boxes 
wool  soap  @  $3;  20  cases,  400  5  Ib  sacks  pastry  flour  @  15  e  a 
sack;  10  bbl.  600  Ib  oyster  crackers  @  8cf.  Terms  3/5n/30  (3% 
off  if  paid  in  5  days,  net  30  days). 

June  4.     Cash  sales  for  week  $168.85. 

June  6.     Sold  Houghton  &  Son,  Salem,  subject  to  draft  after 

5  days,  20  bags  ice  cream  salt  @  75  e';  75  bbl., roller  process  flour 
@  $4. 

June  8.  Bought  of  T.  J.  Mather,  Jackson,  1  car,  500  bu. 
potatoes  @  60  i 

June  10.  Sent  J.  D.  Waterhouse  N.  Y.  draft  in  payment  of 
bill  of  June  3. 

June  13.     Sent  T.  J.  Mather  a  draft  at  10  days  on  Houghton 

6  Son  for  amount  of  bill  of  June  8. 

June  14.  Sold  Phillips  £  Robertson,  Cambridge,  on  account 
10  bbl.  3300  ft)  white  C  sugar  @  4U-. 

June  16.  Bought  of  C,  D.  Williams  £  Co.  15  bags,  1875  Ib 
Rio  coffee  @  18c. 

June  18.     Cash  sales  for  week  $325.40. 

June  20.     Bought  office  stationery  for  cash  $18.25. 

June  21.  Received  from  Houghton  £  Son  their  check  on 
Washington  County  Bank  to  balance  their  account. 

June  23.  Received  Phillips  &  Robertson's  note  at  30  days  in 
payment  of  bill  of  June  14. 

June  25.  Sold  Houghton  £  Son  on  account  5  bbl.  800  Ib 
laundry  'starch  @  3jc. 


40  UP-TO-DATE  KEGENTS  QUESTIONS 

(b)  Post  all  the  items  given  in  a. 

(c)  Make  a  trial  balance  of  the  ledger  called  for  in  b.     Make 
and  close  the  "Loss  and  Gain"  account  of  the  ledger  called  for 
in  b.     Close  the  "Proprietors  account."     Inventories  are:  mer- 
chandise $12,784.60;  furniture  and  fixtures  $1047.50;  expense  $15. 

(d)  Write  (1)  the  N.  Y.  draft  mentioned  in  the  transaction 
of  June  10,  supplying  all  necessary  data,  (2)  the  check  mentioned 
in  the  transaction  of  June  21. 

(e)  Write  (1)  the  time  draft  mentioned  in  the  transaction  of 
June  13,  showing  acceptance,    (2)   the  note  mentioned  in  the 
transaction   of  June   23. 

(/)  Mention  three  forms  of  endorsement  and  illustrate  each 
form  as  applied  to  the  note  of  June  23.  Show  the  effect  of  each 
of  these  three  forms. 

(g)  Write  as  Clarence  White  the  letter  to  accompany  draft 
to  T.  J.  Mather  on  June  13. 

(A)  Write  the  journal  entry  of  the  draft  mentioned  in  the 
transaction  of  Jvine  13,  as  it  would  appear  in  the  books  of  (1) 
the  payee,  (b)  the  drawee. 

160  William  Barney,  dry  goods  merchant  in  Rochester,  has 
made  a  success  in  business  and  now  wishes  to  shift  some  of 
his  cares  to  younger  shoulders.  George  W.  Enright,  who  was 
a  trusted  clerk  of  Barney's  some  10  years  ago,  is  now  in  Boston 
receiving  a  very  liberal  salary.  After  an  exchange  of  letters 
Barney  offers  Enright  a  salary  of  $1000  a  year  and  a  one  fifth 
interest  in  the  entire  business — Enright  to  invest  capital  in 
that  proportion.  An  agreement-  is  concluded  on  these  condi- 
tions and  Barney  invests  cash  $6000,  mdse  $9565.60  and  furni- 
ture and  fixtures  $880,  as  valued  by  appraisers.  Barney  is  to 
take  to  himself  the  outstanding  accounts  receivable  or  payable. 
Enright  invests  $3289.12  in  cash.  An  unlimited  partnership 


BOOKKEEPING  41 

is  formed  on  this  basis  under  the  name  of  William  Barney  & 
Co.  to  take  effect  Dec.  3,  1906. 

Dec.  3.  Bought  by  check,  books  of  account  $50;  10  tons  of 
coal  for  heating  store  $60.  Sold  Smith  &  Burdick,  Utica,  450 
yd.  black  English  camel's  hair  @  $1.87;  500  yd.  Am.  blk.  dress 
silk  ©  $1.25;  250  pc.  blk.  Chantilly  lace  ©  90f*.  Terms  Y10 
VGO  (2%  off  if  paid  in  10  ds.,  net  if  paid  in  60  ds.).  Cash  sales 
(transient  customers)  $245. 

Dec.  4.  Bought  of  Westcott  &  Andrews,  New  York,  100  pc. 
Dutchesse  lace  @  $2.25.  Terms,  2/5  n/30-  Sold  Jackson  Bros., 
Rome,  150  yd.  Barjeon  cashmere  @  $1.37.  Terms,  note  10 
days.  Cash  sales  $314.50. 

Dec.  5.     Sold  Abner  Hill,  Binghamton,  200  yd.  Am.  blk.  silk 

@  SI. 25.     Terms,  YioVeo     Sold  Williams  Bros.,  Olean,  348  yd. 

Wamsutta  cotton  @  39  £.     Terms,  YioVeo-     Cash  sales  $298.50. 

Dec.  6.     Sold  Geo.  Peterson,  Hornell,  on  account,  50  yd.  fine 

Eng.  serge  ©  $1.37.     Bought  of  Wescott  &  Andrews  120  doz. 

ladies'  kid  gloves  @  $7.50.    Terms  2/5  Vso-     Cash  sales  $415.50. 

Dec.  7.     Sent  Wescott  and  Andrews  N.  Y.  draft  to  pay  invoice 

of  Dec.  4.     Sold  Abner  Hill  6  doz.  ladies'  kid  gloves  @  $9.50. 

Terms  2/5  VGO-     Cash  sales  $320. 

Dec.  8.  Bought  of  Gates  &  Bros.  New  York,  100  pc.  fancy 
blk.  ribbon  ©  $2.75.  Terms  2/5  n/30.  Sold  William  Bros.  100 
yd.  Am.  blk.  silk  ©$1.25.  Terms  2/5  Vso-  Cash  sales  $480.20. 
Dec.  10.  Sold  B.  D.  Strong  £  Co.,  Buffalo,  100  pc.  velvet 
ribbon  ©  $2.87.  Terms  Yio  n/60.  Sent  Westcott  &  Andrews  N.  Y. 
draft  to  pay  invoice  of  Dec.  6.  Smith  &  Burdick  send  check  to 
pay  bill  of  Dec.  3.  Abner  Hill  sends  N.  Y.  draft  to  pay  bill 
of  Dec.  5.  Cash  sales  $450.80. 

Dec.  11.     Williams  Bros,  send  N.  Y.  draft  in  payment  of  bill 
of  Dec.  5.     Sold  Mendall  &  Elder,  Saratoga,  100  yd.  Venetian 


42  UP-TO-DATE  REGENTS  QUESTIONS 

crepe  cloth  @  $1 .     Terms,  2/io  n/oo-     Send  note  of  Jackson  Bros, 
to  Bank  of  Rome  for  collection.     Cash  sales  $418.20. 

Dec.  12.     Sent  Gates  &  Bros.  N.  Y.  draft  to  pay  invoice  of 
Dec.  8.     Sold  Perkins  £  Co.,  Niagara  Falls,  100  yd.  blk.  Eng. 
camel's  hair  @  $1.87.     Terms,  YioVeo-     Cash  sales  $528.40. 
Dec.  Cash  sales  $500.50. 

Dec.  14.  George  Peterson  paid  bill  of  Dec.  6.  Cash  sales 
$475.25. 

Dec.  15.  The  Bank  of  Rome  returns  note  of  Jackson  Bros. 
with  protest;  fees  and  expenses  $2.04.  Make  the  proper  entries. 
Paid  items  of  expense  as  follows:  Horses,  wagons  and  drivers 
$52.50,  bookeeper  $55,  billing  clerk  $30,  porter  $20,  errand  boy 
$10,  printing  and  advertising  $82.10,  postage  and  telegrams 
$32.50.  Cash  sales  $516.25. 

(1)  Post  the  books  as  the  conditions  require.  (2)  Make 
a  trial  balance  and  a  statement  of  the  businesss  or  a  balance  sheet 
showing  gain  or  loss  and  present  capital  of  the  respective  part- 
ners. Furniture  and  fixtures  unchanged,  Inventories:  Mdse. 
$3766.33,  Expense  $55. 

161  James  D.  Harrison,  flour  and  feed  merchants,  Yonkers, 
N.  Y.,  determines  to  change  his  books  from  signel  to  double 
entry.  He  has  cash  on  hand  $1567.50,  merchandise  per  inven- 
tory $1265,  furniture  and  fixtures  $530.10,  store  and  lot  $4500, 
notes  and  drafts  due  the  business  $674.50.  His  outstanding 
obligations  are  $945.80  and  his  ledger  shows  the  following  footings 

Dr.  Cr. 

James  Cowan  $641.30  $300.50 

Howard  Booth  495. 

William  L.  Warren  252.75  943.10 

John  O.  Porter  50. 

C.  A.  Martin  &  Co.  119.90  363.25 


BOOKKEEPING  43 

(a)  From  the  information  given  above,  change  the  books  to 
the  double  entry  system,  showing  the  several  steps  by  which  this 
is  accomplished,   and  prove  work  by  trial  balance. 

(b)  Open  a  cashbook  with  the  cash  mentioned  in  a,  and  make 
cashbook  and  journal  entries  of  the  following  transactions  in 
form  for  posting  to  the  double  entry  ledger: 

Jan  2,  1907.  Paid  cash  for  new  set  of  books  and  supply  of 
stationery  $25.60. 

Jan.  3.  Sold  Howard  Booth,  Tarrytown,  on  account  50  bu. 
oats  @  45  c;  100  bu.  corn  @  50  c;  5  tons  timothy  hay  @  $15. 

Jan.  4.  Bought  of  C.  A.  Martin  &  Co.,  Buffalo,  500  bu.  oats 
@  35^;  500  bu.  corn  @  45^5;  50  tons  timothy  hay  @  $12;  20  tons 
prairie  hay  @  $8.  Terms  5/io  n/30  (2%  off  if  paid  in  10  days,  net 
30  days). 

Jan.  5.  Sent  C.  A.  Martin  &  Co.  Check  on  National  Com- 
mercial Bank  to  balance  old  account  $243.35. 

Jan.  7.     Cash  sales  of  merchandise  to  date  $216.84. 

Jan.  8.  Bought  of  John  O.  Porter,  New  York,  on  account 
25  bbl.  XXX  fiour  <o>  $4.50;  10  bbl.  graham  flour  @  $6. 

Jan.  9.  Sent  John  O.  Porter  a  10  day  draft  on  Henry  Brown, 
New  York,  for  $200,  dated  today,  to  apply  on  account. 

Jan.  10.  Sold  Howard  Booth  on  account  2  tons  ground  feed 
@  $20;  2  bbl.  flour  @  $6;  5  tons  prairie  hay  @  $10. 

Jan.  11.  Bought  of  Howe  &  Wayne  for  cash  50  tons  timothy 
hay  @  $12.50. 

Jan.  12.  Howard  Booth  remits  a  30  day  note  for  $525,  drawn 
by  William  Saunders.  Jan.  9,  in  favor  of  Booth  and  indorsed  to 
Harrison. 

Jan.  14.  Sent  C.  A.  Martin  &  Co.  New  York  draft  (National 
Commercial  Bank,  George  Davis,  cashier,  on  Merchants  Bank, 


44  UP-TO-DATE  REGENTS  QUESTIONS 

New  York)  in  payment  of  bill  of  Jan.  4,  less  discount.  Cash 
sales  to  date  §379.40. 

Jan.  15.  Borrowed  $1500  from  Foster  &  Bowen  on  note  at 
90  days  with  interest. 

Jan.  16.  Bought  of  Smith  &  Jones  on  account  100  bbl.  winter 
wheat  flour  @  $5.25;  150  bbl.  patent  flour  @  $6.10. 

Jan.  17.     Paid  carpenter  cash  for  repairs  $65.91. 

(c)  Post  to  the  double  entry  ledger  opened  in  (a)  the  itmes 
given  in  (6). 

(d)  Write  (1)  the  draft  mentioned  in  the  transaction  of  Jan. 
9,  showing  acceptance,  (2)  the  note  referred  to  in  transaction 
of  Jan.   12,  showing  indorsement. 

(e)  Make  out  the  invoice  of  goods  purchased  on  Jan.  4  and 
write  the  New  York  draft  sent  in  settlement  on  Jan.  14. 

(/)  Write  the  journal  entry  of  the  draft  mentioned  in  the 
transaction  of  Jan.  9  as  it  would  appear  in  the  books  of  (1)  the 
payee,  (2)  the  drawee.  (Mark  each  entry  to  show  in  whose 
books  it  belongs.)  If  Porter  had  this  draft  discounted  at  the 
bank  on  Jan.  11  what  amount  did  he  receive' 

162  (a)  Make  cashbook  and  journal  entires  of  the  following 
transactions  in  form  for  posting  to  the  double  entry  ledger: 

Aug.  31,  1907.  Howard  W.  Loomis  and  S.  R.  Williams  form 
a  partnership  firm  under  the  name  of  Loomis  £  Williatns,  to 
carry  on  a  wholesale  dry  goods  business  in  Troy,  N.  Y.,  gains 
and  losses  to  be  shared  according  to  investment.  Loomis  in- 
vests his  stock  of  goods  valued  at  $7056.40,  and  furniture  and 
fixtures  $443.60.  Williams  invests  cash  $5000. 

Sep.  3.     Bought  of  Bouton  Mfg.  Co.,  North  Adams,  10  pcs. 
512  yd,  vS.  M.  print  @  5p;  5  pcs,  234  yd,  Scotch  cheviots  @ 
Terms  3/10  n/so  (3%  °ff  if  paid  in  10  days,  net  30  days). 


BOOKKEEPING  45 

Sep.  4.  Sold  F.  R.  Grant,  City,  15  gross  bone  buttons  @  15  e; 
10  doz.  boys'  heavy  cotton  hose  @  SI. 25;  6  doz.  men's  half  hose 
©  86.85.  Terms  2/10  R/60. 

Sep.  5.     Bought  office  stationery  for  cash  $7.65. 

vSep.  6.  Sold  filler  £  Miller  on  account,  10  gross  gilt  buttons 
@,  §2.25;  10  pcs.  504  yd,  fancy  gingham  @  ! 

Sep.  7.  Bought  of  Botiton  Mfg.  Co.  25  pcs,  1310  yd,  fancy 
gingham  @  7 p.  Terms  3/io  Vso- 

Sep.  9.  Paid  Preston  &  Y/alker  cash  for  25  tons  coal  @  $6.50 
for  heating  store. 

Sep.  10.  Sold  George  A.  Allen,  Mechanicville,  on  account  10 
pcs  black  chantillylace  @  90c;  20  pcs  marquise  lace  @  §2.20. 

Sep.  11.  Bought  of  Brooks  &  Co.,  New  York,  10  pcs,  520  yd, 
black  dress  silk  (a  81;  100  doz.  spools  sewing  silk  @  8'' 

Sep.  12.  Accepted  Brooks  £  Go's  draft  at  10  days  drawn  on 
themselves  for  $500. 

Sep.  13  Sent  Bouton  Mfg.  Co.  New  York  draft  for  amount 
of  invoice  of  Sep.  3,  less  discount. 

Sep.  14.  Received  F.  R.  Grant's  check  for  amount  of  bill  of 
Sep.  4,  less  discount. 

Sep.  16.  Sold  Frank  C.  Thomas  for  cash  5  doz.  men's  kid 
gloves  @  S9. 

Sep.  17.  Bought  for  cash  from  New  England  Furniture  Co., 
a  roll-top  desk  for  office,  $17.50. 

(b)  Post  to  the  double  entry  ledger  all  items  given  in  a. 

(c)  Inventories  are  merchandise  $ 7 764. 50,  furniture  and  fix- 
tures §454.50    (several  chairs  were  broken),   expense  $158.22. 
Close  accounts  showing  loss  or  gain  into  Loss  and  Gain  account; 
close  proprietors'  accounts  showing  net  gain  or  loss  and  present 
worth  of  each  partner. 


46  UP-TO-DATE  KEGENTS  QUESTIONS 

(d)  (1)  Write  the  draft  mentioned  in  transaction  of  Sept. 
12,  showing  acceptance.  (2)  Write  the  New  York  draft  men- 
tioned in  transaction  of  Sept.  13  and  show  proper  indorsement 
(National  Commercial  Bank,  John  Smith,  Cashier,  on  Producers 
Bank  of  New  York). 


BY  EXAMINATIONS 

January  22,    1919 

163  Make,  with  sufficient  explanations,  the  proper  entries 
for  the  following  selected  transactions,  using  at  least  a  double 
entry  journal  and  a  cashbook  as  books  of  original  entry: 

On  Dec.  1,  1918.,  the  cashbook  of  Fuller  (J.  E.)  &  Stowe  (R.  P.), 
a  partnership  engaged  in  a  general  merchandising  business  in 
New  Rochelle,  N.  Y.,  shows  a  balance  of  $2635.80  of  which 
$2410.50  is  on  deposit  in  the  Westchester  Trust  Co.  Enter  the 
cash  balance  in  the  cashbook. 

Dec.  2  Paid  semi-annual  interest  due  Westchester  Trust  Co. 
on  a  mortgage  of  §3000  at  5%  interest. 

Dec.  4  Bought  of  Warren  Bros.,  New  York,  terms  3/io>  mer- 
chandise  amounting  to  $691.50.  Paid  freight  on  merchandise 
purchased  $10.45. 

Dec.  5  Sold  Mrs.  M.  A.  Carter,  City,  terms  on  account,  a 
bill  of  goods  amounting  to  $79.40. 

Dec.  9  Received  from  Lawrence  Taylor,  Mount  Vernon,  N.  Y., 
his  30  day  note,  dated  Dec.  7,  for  $375  and  check  for  $78.32  in 
payment  of  bill  of  Nov.  9;  amount  of  bill  $457.90,  less  1%. 

Dec.  10  Paid  electric  light  bill  $15.30,  miscellaneous  expenses 
$26.35. 

Dec.  11  Discounted  at  Westchester  Trust  Co.  Taylor's  note 
of  Dec.  7  and  received  credit  for  the  proceeds. 

Dec.  11  Paid  C.  A.  Young  £  Co.,  New  York,  $250  to  apply 
on  account. 

Dec.  14  Gave  Warren  Bros,  our  10  day  interest-bearing  note 
for  invoice  of  Dec.  4,  less  the  discount. 

(47) 


48  UP-TO-DATE  EEGEISTS  QUESTIONS 

Dec.  1-6  Sold  Arthur  Dwyer,  City,  terms  on  account,  a  bill 
of  goods  amounting  to  $163.78. 

Dec.  1.7  Received  Henry  Wheeler's  10  day  acceptance,  dated 
Dec.  16,  for  §125.60  balance  of  account  due  Dec.  1.  Draft  was 
drawn  Dec.  10. 

Dec.  20  Bought  of  Yonkers  Trading  Co.,  terms  on  account, 
merchandis  amounting  to  8561.20. 

Dec.  24  Received  notice  from  Yonkers  Trading  Co.  that  our 
claim  for  838.75  for  damaged  goods  returned  has  been  allowed. 

Dec.  24  Paid  by  check  our  note  in  favor  of  Warren  Bros,  due 
today. 

Dec.  27  Received  Wheeler's  check  in  payment  of  acceptance 
of  Dec.  16. 

Dec.  28  Fuller,  one  of  the  partners,  withdrew  SI 50  for  pri- 
vate use. 

Dec.  31  Paid  office  and  store  salaries  §140. 

Balance  the  cashbook  and  bring  down  the  balance. 

164  On  Dec.  31,  1918,  the  ledger  accounts  of  James  L.  Collins, 
a  local  merchant,  show  the  following  information  concerning  his 
business  for  the  year  just  ended: 

Goods  on  hand  Jan.  1,  818,607.50;  goods  purchased  during 
the  year  $59,329.40;  goods  sold  during  the  year  $79,547.10; 
freight  paid  on  goods  purchased  during  the  year  §1389.35;  dis- 
counts allowed  in  the  settlement  for  goods  purchased  §838.64; 
expenses  $5650;  interest  paid  on  notes  issued  to  creditors  §168.73. 

The  goods  on  hand  De£.  31  are  valued  at  $15,862;  depreciation 
on  store  fixtures  is  estimated  at  10%  of  book  value  af  $3000. 

From  the  above  information,  prepare  for  Mr.  Collins  a  profit 
and  loss  statement  for  the  year  under  consideration. 

165  With  a  balance  of  $863.78  due  on  Nov.  1,  1918,  (a)  open 
an  account  with  Henry  L.  Davis,  one  of  your    customers,   (b) 


BOOKKEEPING  4(.) 

make  the  required  entries  in  the  account  for  the  following  tran- 
sactions, (c)  show  the  balance  of  the  account  as  of  Dec.  31: 

Nov.   2  Sold  him  goods  on  account  8281.90. 

Nov.  10  Received  his  30  day  note  for  8300  to  apply  on  bal- 
ance due  Xov.  1 . 

Xov.  13  Sold  him  goods  on  terms  2/io  °/30,  8196.75. 

Xov.  17  Allowed  his  claim  for  828.50  for  damaged  goods  con- 
tained in  shipment  of  Xov.  13. 

Xov.  23  Received  his  check  for  the  amount  due  on  bill  of 
Xov.  13. 

Xov.  25  Received  his  check  for  the  part  of  the  balance  due 
Xov.  1  still  remaining  unpaid. 

Dec.  5  Sold  him  goods  amounting  to  8483.25  and  received 
his  60  day  note  for  8250,  balance  on  account.  Freight  amount- 
ing to  815.61  was  charged  to  his  account. 

Dec.  12  Received  his  check  for  one  half  the  balance  due  Dec.  1. 

Dec.  24  Received  his  check  for  balance  due  on  bill  of  Dec.  5. 

166  Referring  to  question  163,  write  (a)  the  note  required  in 
transaction  of   Dec.  9,  (b)  the  draft  required  in  transaction  of 
Dec.  17. 

167  (a)     Why  are  entries  journalized  and  not  made  in  the 
ledger  direct? 

(b)     Why  are  cash  entries  kept  in  a  separate  book? 

168  Explain  each  of  the  following:   note  receivable,   balance 
sheet,   invoice,   ledger,   capital. 


DATE 


Caylord  Bros 

Makers 

Syracuse,  N.  Y. 
PAT.  JAM.  21. 190* 


VC  245 j 


415787 


